• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

Hyflux CEO grilled over being paid S$60mil in dividends while firm resorted to seeking protection from creditors

by The Online Citizen
11/02/2019
in Business
Reading Time: 3 mins read
0

Photo of TuasSpring power plant from Hyflux's website

Troubled water treatment firm Hyflux’s Board of Directors, through its founder and executive chairperson Olivia Lum, were grilled by the Securities Investors Association Singapore (SIAS) over her apparent lack of participation in restructuring efforts despite receiving a payment of more than S$60 million in dividends from her 34 per cent ordinary shareholding in the firm.

A statement by SIAS written on Friday (8 Feb) and published on Monday (11 Feb) read that Ms Lum had also “received significant salary, benefits and bonuses and earned between SGD750,000 and SGD1 million in 2017, a year in which Hyflux reported losses of SGD115.6 million”.

Mr Gerald highlighted that during the same period, “Hyflux reported losses of S$115.6 million and a period which was five months prior to Hyflux Group filing for court protection from creditors and when Hyflux has been losing huge amounts of cash and building projects”.

President and CEO of SIAS David Gerald questioned Ms Lum’s role in the firm’s restructuring efforts, as well as the reasons behind not contributing her gains from Hyflux Group to the restructuring process.

He also raised the question as to why the Board continued to pay dividends even “when the operating cash flow was negative and accumulate more debt during this time”, on top of asking “how it was possible that despite the negative operating cash flow, Hyflux continued to report profits in each year” prior to FY2017.

Hyflux’s annual report indicated that the firm’s top executives had received a total remuneration of S$2,695,134.20 in the 2017 financial year.

Hyflux’s Tuaspring plant was also the subject of scrutiny by SIAS.

Tuaspring provides up to 318,500 m3 or 70 million gallons of desalinated water per day to Singapore’s water supply under a 25-year design-build-own-operate arrangement with PUB.

Citing a partially-funded shareholder loan of S$57 million, Mr Gerald raised the question as to how Hyflux had obtained funding for the loan to Tuaspring, as “Tuaspring has been loss-making since it commenced operations in 2015”.

He also probed on the overvaluation of Tuaspring at S$1.4 billion for sale, which he claims has been proven to be “at least S$900 million” over its actual value.

He added that Hyflux has confirmed any bids received in the 2018 sale process for Tuaspring were for less than Maybank’s outstanding project finance debt of approximately S$500 million.

“What is the monthly cash burn at Tuaspring? What are Tuaspring’s current cash reserves? What is the current market value for the Tuaspring asset?” Mr Gerald asked.

While a multimillion-dollar lifeline was extended to Hyflux by SM Investments in the form of acquisition of 60 per cent of the firm’s shares by Salim Group and Medco Group for S$400 million, in addition to a shareholder’s loan of S$130 million, it remains a speculation as to whether Government agencies such as the Public Utilities Board and the National Environment Agency will approve the investment.

Earlier this month, Hyflux announced that it had obtained the approval of Maybank – its only secured lender – to further hold negotiations with the Malaysian bank regarding the divestment of the plant.

This marks the fifth time in which the deadline was postponed – until the 28th this month – for Hyflux to seal the deal with a successful bidder or investor for the purpose of acquiring the plant.

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Level of unemployment in Indonesia shows failure in the Job Creation Law, says KSPI
Indonesia

Level of unemployment in Indonesia shows failure in the Job Creation Law, says KSPI

02/02/2023
Commentaries

The Keppel bribery scandal tests Singapore’s zero-tolerance policy towards corruption

02/02/2023
Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives
Singapore

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

02/02/2023
US businesses ‘fear internet curbs in Hong Kong’
AFP

Hong Kong offers free flights after COVID isolation

02/02/2023
Why is Gautam Adani’s Indian empire in turmoil?
AFP

Why is Gautam Adani’s Indian empire in turmoil?

02/02/2023
India’s Adani shares plunge again after stock sale cancelled
AFP

India’s Adani empire loses more than US$100 bn after fraud claims

02/02/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Latest posts

Level of unemployment in Indonesia shows failure in the Job Creation Law, says KSPI

Level of unemployment in Indonesia shows failure in the Job Creation Law, says KSPI

02/02/2023

The Keppel bribery scandal tests Singapore’s zero-tolerance policy towards corruption

02/02/2023
Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

02/02/2023
US businesses ‘fear internet curbs in Hong Kong’

Hong Kong offers free flights after COVID isolation

02/02/2023
Why is Gautam Adani’s Indian empire in turmoil?

Why is Gautam Adani’s Indian empire in turmoil?

02/02/2023
India’s Adani shares plunge again after stock sale cancelled

India’s Adani empire loses more than US$100 bn after fraud claims

02/02/2023
Former political prisoners calls for abolishment of ISA and apology from PAP Govt on 60th anniversary of Operation Coldstore

Former political prisoners calls for abolishment of ISA and apology from PAP Govt on 60th anniversary of Operation Coldstore

02/02/2023
Indian state picks new capital after kicking out Singapore consortium

Indian state picks new capital after kicking out Singapore consortium

02/02/2023

Trending posts

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

by Yee Loon
30/01/2023
25

...

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

by Yee Loon
26/01/2023
24

...

Two Indian nationals paid about S$330 and S$730 respectively for forged certificates submitted in their S-Pass application

MOM found issuing EPs meant for foreign PMETs to PRC waitress and general worker

by Correspondent
26/01/2023
41

...

They have done a fine job of confusing us about the jobs situation

They have done a fine job of confusing us about the jobs situation

by Augustine Low
01/02/2023
33

...

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

by The Online Citizen
26/01/2023
59

...

Indian rupee falls 60% since signing of CECA while Singapore becomes top investor in India

by Correspondent
25/01/2023
69

...

February 2019
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728  
« Jan   Mar »

The Online Citizen is a regional online publication based in Taiwan and formerly Singapore’s longest-running independent online media platform.

Navigation

  • Editorial
  • Commentaries
  • Opinion
  • Politics
  • Community

Support

  • Contact Us
  • Letter submission
  • Membership subscription

Follow Us

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Fact Checking Policy
  • Privacy Policy

© 2022 - 2023 The Online Citizen Asia

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2022 - 2023 The Online Citizen Asia

wpDiscuz